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Compressed Natural Gas (CNG) prices in Delhi and adjoining cities increased by Rs 3.89 per kg from 6 am on Saturday, Indraprastha Gas Ltd (IGL) said.

In a statement, IGL attributed the revision to rising input gas costs, with a significant portion of the gas used to supply CNG being sourced through imported liquefied natural gas (LNG).

IGL said spot and current-market LNG prices have risen significantly since the beginning of the West Asia conflict, making a price adjustment necessary.

"With international LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of ₹3.89 per kg has now become necessary to partially offset the increase in input gas cost," IGL said.

Global LNG Prices Surge

According to IGL, global spot LNG prices have nearly doubled amid escalating conflicts in West Asia, which have disrupted LNG cargo movements through the Strait of Hormuz.

European demand ahead of the winter season has also contributed to the pressure on international gas prices.

The company said the latest revision is intended to partially offset the increase in input gas costs while ensuring uninterrupted CNG supply.

Delhi CNG Price Rises To Rs 83.09 Per Kg

IGL said Delhi's retail CNG price has gradually increased from Rs 77.09 per kg to Rs 83.09 per kg, representing an increase of around 7.8 per cent.

The company compared this with much sharper increases in international gas benchmarks.

The European TTF gas benchmark rose from around $11.36 per MMBTU to approximately $23.35 per MMBTU, an increase of about 105 per cent.

Similarly, the Asian JKM LNG benchmark climbed from around $10.99 per MMBTU to $23.41 per MMBTU, marking a rise of approximately 113 per cent.

IGL Says Consumers Shielded From Full Impact

IGL said Indian consumers have largely been insulated from the volatility in international energy markets despite the increase in global gas prices.

The company attributed this to strategic sourcing and calibrated price adjustments, which it said helped limit the impact on daily commuters, public transport operators and other price-sensitive vehicle owners.

Imported LNG Meets CNG Supply Gap

IGL said rapid economic growth and rising consumer demand have increased the country's reliance on imported spot LNG to bridge the CNG supply gap.

Despite the sharp movement in international gas benchmarks, the company said retail CNG prices in Delhi have seen only a comparatively modest increase.

IGL also reaffirmed its commitment to optimising sourcing costs and maintaining CNG as an economical, clean and dependable fuel for auto-rickshaws, taxis, private vehicles and public transport fleets.

(With agency inputs)